New Mexico Supreme Court Undermines Validity of Standard Royalty Agreements

By | North America Shale Blog | September 19, 2014

On September 15, 2014, the New Mexico Supreme Court entered a decision in First Baptist Church of Roswell v. Yates Petroleum Corp., a case that could call into question the validity of royalty agreements and division orders throughout New Mexico and that will have broad implications for how New Mexico operators draft and negotiate such agreements in the future.